Branstad: Health savings accounts for state workers make sense

Republican Terry Branstad said today he is looking at health savings accounts for state employees as a cost-saving measure.

“I also want to work with the Legislature, with the employee organizations to look at how we can find further ways to reduce the size and cost of government, like Gov. Mitch Daniels has done in Indiana,” Branstad said during a meeting with Des Moines Register reporters and editors.

“What he did in Indiana, state employees now have health savings accounts and that saved both the state and employees on their health care costs,” Branstad said.

Branstad, a former governor seeking the office again, has already said he would propose that those state employees who now opt for health plans that require no employee contributions pay a portion of the cost of their own health insurance.

Health savings accounts are for people who are enrolled in high-deductible insurance plans. The accounts are owned by consumers, not employers or insurance providers, and can only be used for medical expenses. The money deposited in them is not taxed and can be invested.

Branstad said after the Register meeting that the Indiana program, begun in 2006, now has a participation rate of 70 percent. He stopped short of saying he would propose it. It is another in a recent string of suggestions Branstad is making as a candidate for governor that echo measures enacted by other Republican governors.

Last week, Branstad credited New Jersey Gov. Chris Christie for requiring state employees to pay a portion of their health care costs.

“It’s something I want to look at. I think it makes sense,” Branstad said about the savings accounts. “I understand that you have to go through negotiations with the union.”

Any change in benefits for state employees would have to be approved during contract negotiations.